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A Service Level Agreement (SLA) is a written agreement that stipulates the minimum level of service a service provider must deliver under a contract. Unlike Key Performance Indicators (KPIs), which gauge a provider's performance against specific targets, SLAs focus on the required service levels and outline steps to take if these levels are not met. These steps often include financial repercussions to compensate the client for losses due to underperformance. SLAs are regularly monitored to track performance and implement corrective measures when necessary. For more insights on KPIs, a related video is available on our channel.
